Subsidiary of Coeur Mining, Inc. signs Definitive Agreement with Evrim Resources to option Sarape gold-silver project
VANCOUVER, British Columbia, June 18, 2018 (GLOBE NEWSWIRE) -- Evrim Resources Corp. (TSX-V:EVM) (“Evrim” or the “Company”) is pleased to announce that further to its news release of February 20, 2018, the Company has signed a Definitive Agreement (the “Agreement”) with a subsidiary of Coeur Mining Inc. (“Coeur”) in respect of the Sarape epithermal gold-silver project in Sonora, Mexico. Coeur will have the exclusive right to acquire up to an 80% interest in Sarape by spending up to US$16.5 million on exploration, making staged cash payments of up to US$2.55 million, and completing a National Instrument (“NI”) 43-101 compliant Feasibility Study on a minimum measured and indicated resource estimate of 1,000,000 ounces gold equivalent, all within a ten-year period.
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Evrim’s President and CEO, Paddy Nicol, commented, “Sarape is located in an emerging epithermal gold belt hosting several mines and deposits, including Premier Gold’s Mercedes Mine, First Majestic Silver’s Santa Elena Mine, and SilverCrest’s Las Chispas deposit. Evrim’s Ermitaño project, under option to First Majestic Silver, is also in the belt where a maiden inferred resource of 40.8 million ounces silver equivalent* (562,000 ounces gold equivalent) was recently announced (see First Majestic Silver news release of March 29, 2018). We look forward to working with Coeur’s team on Sarape and will commence exploration in late June.”
Transaction Terms
Coeur can earn the 80% interest in the Property by: (i) making cash payments totaling up to US$2.55 million over ten years, of which the first year’s payment of US$100,000 is a firm commitment; (ii) completing exploration work of up to US$16.5 million over ten years, of which the first year’s exploration work requirement of US$500,000 is a firm commitment; and (iii) delivering a NI 43-101 Feasibility Study on a minimum measured and indicated mineral resource of 1,000,000 gold equivalent ounces (collectively, the “Option Conditions”). Additionally, in the event that Coeur does complete a NI 43-101 Preliminary Economic Assessment (“PEA”) that contemplates a minimum resource base of 1,000,000 gold equivalent ounces, and elects not to exercise the option, Coeur will be granted a 2.0% net smelter royalty (“NSR”) on minerals extracted from the Property. Evrim may purchase one-half of such NSR for US$2.0 million.
Once Coeur has completed the Option Conditions and earned its 80% interest, it will continue to pay to Evrim US$100,000 per year until mining and construction permits are received. Once the permits are received, Evrim may elect to participate in the joint venture with a 20% equity interest, or convert its 20% interest into a 3.0% NSR, of which one-third can be purchased by Coeur for US$2.0 million.
Evrim will be the operator of the project up to the completion of the PEA after which Coeur shall be the operator.
About the Sarape Project
Sarape was identified through Evrim’s generative programs with reconnaissance exploration completed in early 2017. The project is 100% owned by Evrim with no underlying royalties and is located near excellent infrastructure with roads and power crossing the 5,776 hectare property (Figure 1).
Work to date has defined two major veins (Figure 2): the Sarape vein, a northwest trending vein measuring six kilometres in length and up to twelve metres in width, and the Chiltepin vein, a west trending vein measuring 2.6 kilometres in length and up to three metres in width. Both veins are located either side of a Laramide age horst block (Figure 3).
Systematic channel sampling revealed that the western portion of both veins contains barren white quartz and calcite interpreted to be a late, shallow part of the system. The eastern portion of the veins are composed of a separate phase of low-temperature, tan green quartz that consistently assays from 0.10 to 0.36 grams per tonne (g/t) gold across sampled widths, with individual samples assaying up to 3.6 g/t gold.
Vein textures in this portion suggest they may represent the upper levels of a gold/silver bearing system with bonanza grade targets in the boiling zone at depth. This setting is near identical to the outcropping veins at Ermitaño West (40 kilometres to the south) where Evrim’s exploration partner First Majestic Silver discovered bonanza grades 150 metres beneath low grade surface veins. Neither vein at Sarape has ever been drilled.
Qualified Person Statement
Evrim's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., Vice President of Technical Services. Mr. Harris serves as a Qualified Person under the definition of National Instrument 43-101.
*Note: Inferred resources of 40.8 million ounces silver equivalent were calculated by First Majestic with an average grade of 4.0 grams per tonne ("g/t") gold and 68 g/t silver, or approximately 562,000 ounces gold equivalent, using First Majestic's metal prices of US$1,450 per ounce gold and US$20 per ounce silver along with other assumptions used in determining metal equivalent stated in its March 29, 2018 news release.
About Evrim Resources
Evrim Resources is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable value generation model. The Company is well financed, has a diverse range of quality projects and a database in Mexico and portions of southwestern United States. The existing projects, and generation of quality exploration targets and ideas, are advanced through option and joint venture agreements with industry partners to create shareholder value. Evrim’s business plan also includes royalty creation utilizing the Company’s exploration expertise and existing projects.
On Behalf of the Board
EVRIM RESOURCES CORP.
Paddy Nicol
President & CEO
To find out more about Evrim Resources Corp., please contact Paddy Nicol, President or Charles Funk, VP New Opportunities and Exploration at 604-248-8648, or Donna Yoshimatsu at 416-722-2456, or visit our website at www.evrimresources.com.
Forward Looking Information
This news release includes certain statements that may be deemed "forward looking statements". All statements in this news release, other than statements of historical facts, that address events or developments that Evrim Resources Corp. (the "Company“) expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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